Insperity client survey results: Impacts of COVID-19 pandemic
1
To understand the business impacts of the COVID-19 pandemic on its clients and related client concerns, Insperity surveyed business leaders across a variety of industries from its base of Workforce Optimization® and Workforce SynchronizationTM clients throughout the United States. This survey was conducted during the week of April 27, 2020, and focused on key areas of concern, business impact and response, and expectations going forward.
Financial impact and top concerns The COVID-19 pandemic has had a negative financial impact on businesses, leading to a focus on business continuity.
Over a month into the COVID-19 crisis, most respondents (87%) report a negative financial impact on their business. Accordingly, respondents report their top concern is business continuity (82%). However, employee concerns are also top priorities, including employee well-being and mental health (64%), workplace safety (57%) and engagement/culture sustenance (47%).
82%
64%
47%
57%
35%
33%
39%
What are the top concerns for your business?
Sustaining through economic slowdown
Employee well-being and mental health
Return-to-work considerations/workplace safety
Employee engagement/ sustainingrelationships and culture
Innovation/ rethinking our business model
Staying current regarding policychanges for employers
Meeting terms for loan forgiveness
Changing skills and capabilitiesrequired for employees
Meeting increased demand forproducts/services
Top concerns
15%
14%
Over the next several months,how do you expect your
current staffing levelsto change?
Anticipated staf�ng levels, next several
months
11%
70%
Uncertain
Decrease staff levels
Moderatenegativeimpact
5% 7% 16%72%
� Increase compensation levels
� Maintain current compensation levels
� Decrease compensation levels
� Uncertain
Which best describes yourcurrent staffing level?
Current staf�ng levels
5%
27%
68%
Increased
Unchangedsince COVIDcrisis
Reducedsince COVIDcrisis
Have you applied for any loansto address the impact of
COVID-19 to your business?For the loan program shown, please select the
option that best describes your business.
14%
83%
3%
Loan application status Have applied/plan to apply: Loan types
No
Not yet, but plan to
Yes
Following these changes, how doyou expect your staffing levels to
compare to your pre-COVIDemployee count?
What are your plans for employees’ salaries/wages over the next several months?
Following staf�ngchanges, comparison
to pre-COVID employee count
26%
56%
18%
Uncertain
Below pre-COVIDlevels
At or abovepre-COVIDlevels
92%78%
14%2%
20%2%
16%9%
15%5%
2%
5%
Which of these options are true for your business/organization in describing your response to the COVID-19 pandemic and related social distancing requirements?
Took steps to address employee safety
Moved a significant number of employees to WFH
Temporarily closed one or more location
Permanently closed one or more location
Reduced the hours employees are working
Increased the hours employees are working
Implemented temporary layoffs or furloughed employees
Implemented permanent workforce reductions
Increased staff to ensure delivery of products/services
Reduced base pay rate for some or all workers due to cash constraints
Instituted additional pay or bonuses for essential employees
No changes
COVID-19 response
Expected compensation changes, next several months
Insperity Survey:respondents applying
for PPP loans
Workplace safety
Locations
Work hours
Staffing
Wages
Overall, which best describes how your business/organization has been
financially impacted by COVID?
9%
4%
51%
36%
Financial impact,COVID-19
Significant/moderate positive impact
No impact
Moderatenegative impact
Significant negative impact
93% 96%3%
38% 46%8%
19% 29%10%
PPP
EIDL
Direct
� Applied but have not received
� Applied and received funds
� Applied but have not received
� Applied and received funds
41%59%
NFIB Survey:respondents applying
for PPP loans
80%
20%
|
� Have applied
� Plan to apply
19%
Business Outlook Survey – May 2020 | 3
COVID-19 responseRespondents have taken numerous proactive workplace approaches to respond to COVID-19.
Most respondents (92%) took steps to ensure employee safety, including moving a significant number of employees to a work-from-home model (78%).
Other notable responses include reduced employee work hours (20%), temporary layoffs or furloughs (16%), reduced base pay rates for some or all workers (15%), temporary location closings (14%) and permanent workforce reductions (9%).
Very few respondents indicate their organizations have not been impacted relative to workplace safety, locations, work hours, staffing, or wages (5%).
82%
64%
47%
57%
35%
33%
39%
What are the top concerns for your business?
Sustaining through economic slowdown
Employee well-being and mental health
Return-to-work considerations/workplace safety
Employee engagement/ sustainingrelationships and culture
Innovation/ rethinking our business model
Staying current regarding policychanges for employers
Meeting terms for loan forgiveness
Changing skills and capabilitiesrequired for employees
Meeting increased demand forproducts/services
Top concerns
15%
14%
Over the next several months,how do you expect your
current staffing levelsto change?
Anticipated staf�ng levels, next several
months
11%
70%
Uncertain
Decrease staff levels
Moderatenegativeimpact
5% 7% 16%72%
� Increase compensation levels
� Maintain current compensation levels
� Decrease compensation levels
� Uncertain
Which best describes yourcurrent staffing level?
Current staf�ng levels
5%
27%
68%
Increased
Unchangedsince COVIDcrisis
Reducedsince COVIDcrisis
Have you applied for any loansto address the impact of
COVID-19 to your business?For the loan program shown, please select the
option that best describes your business.
14%
83%
3%
Loan application status Have applied/plan to apply: Loan types
No
Not yet, but plan to
Yes
Following these changes, how doyou expect your staffing levels to
compare to your pre-COVIDemployee count?
What are your plans for employees’ salaries/wages over the next several months?
Following staf�ngchanges, comparison
to pre-COVID employee count
26%
56%
18%
Uncertain
Below pre-COVIDlevels
At or abovepre-COVIDlevels
92%78%
14%2%
20%2%
16%9%
15%5%
2%
5%
Which of these options are true for your business/organization in describing your response to the COVID-19 pandemic and related social distancing requirements?
Took steps to address employee safety
Moved a significant number of employees to WFH
Temporarily closed one or more location
Permanently closed one or more location
Reduced the hours employees are working
Increased the hours employees are working
Implemented temporary layoffs or furloughed employees
Implemented permanent workforce reductions
Increased staff to ensure delivery of products/services
Reduced base pay rate for some or all workers due to cash constraints
Instituted additional pay or bonuses for essential employees
No changes
COVID-19 response
Expected compensation changes, next several months
Insperity Survey:respondents applying
for PPP loans
Workplace safety
Locations
Work hours
Staffing
Wages
Overall, which best describes how your business/organization has been
financially impacted by COVID?
9%
4%
51%
36%
Financial impact,COVID-19
Significant/moderate positive impact
No impact
Moderatenegative impact
Significant negative impact
93% 96%3%
38% 46%8%
19% 29%10%
PPP
EIDL
Direct
� Applied but have not received
� Applied and received funds
� Applied but have not received
� Applied and received funds
41%59%
NFIB Survey:respondents applying
for PPP loans
80%
20%
|
� Have applied
� Plan to apply
19%
Business Outlook Survey – May 2020 | 4
82%
64%
47%
57%
35%
33%
39%
What are the top concerns for your business?
Sustaining through economic slowdown
Employee well-being and mental health
Return-to-work considerations/workplace safety
Employee engagement/ sustainingrelationships and culture
Innovation/ rethinking our business model
Staying current regarding policychanges for employers
Meeting terms for loan forgiveness
Changing skills and capabilitiesrequired for employees
Meeting increased demand forproducts/services
Top concerns
15%
14%
Over the next several months,how do you expect your
current staffing levelsto change?
Anticipated staf�ng levels, next several
months
11%
70%
Uncertain
Decrease staff levels
Moderatenegativeimpact
5% 7% 16%72%
� Increase compensation levels
� Maintain current compensation levels
� Decrease compensation levels
� Uncertain
Which best describes yourcurrent staffing level?
Current staf�ng levels
5%
27%
68%
Increased
Unchangedsince COVIDcrisis
Reducedsince COVIDcrisis
Have you applied for any loansto address the impact of
COVID-19 to your business?For the loan program shown, please select the
option that best describes your business.
14%
83%
3%
Loan application status Have applied/plan to apply: Loan types
No
Not yet, but plan to
Yes
Following these changes, how doyou expect your staffing levels to
compare to your pre-COVIDemployee count?
What are your plans for employees’ salaries/wages over the next several months?
Following staf�ngchanges, comparison
to pre-COVID employee count
26%
56%
18%
Uncertain
Below pre-COVIDlevels
At or abovepre-COVIDlevels
92%78%
14%2%
20%2%
16%9%
15%5%
2%
5%
Which of these options are true for your business/organization in describing your response to the COVID-19 pandemic and related social distancing requirements?
Took steps to address employee safety
Moved a significant number of employees to WFH
Temporarily closed one or more location
Permanently closed one or more location
Reduced the hours employees are working
Increased the hours employees are working
Implemented temporary layoffs or furloughed employees
Implemented permanent workforce reductions
Increased staff to ensure delivery of products/services
Reduced base pay rate for some or all workers due to cash constraints
Instituted additional pay or bonuses for essential employees
No changes
COVID-19 response
Expected compensation changes, next several months
Insperity Survey:respondents applying
for PPP loans
Workplace safety
Locations
Work hours
Staffing
Wages
Overall, which best describes how your business/organization has been
financially impacted by COVID?
9%
4%
51%
36%
Financial impact,COVID-19
Significant/moderate positive impact
No impact
Moderatenegative impact
Significant negative impact
93% 96%3%
38% 46%8%
19% 29%10%
PPP
EIDL
Direct
� Applied but have not received
� Applied and received funds
� Applied but have not received
� Applied and received funds
41%59%
NFIB Survey:respondents applying
for PPP loans
80%
20%
|
� Have applied
� Plan to apply
19%
Current and anticipated staffing levelsFor most respondents, current staffing levels are unchanged since the COVID crisis, and more than half expect that over the next several months their employee count will be at or above pre-COVID levels.
At the time of this survey, 27% of respondents indicated that they have reduced their staff as a result of the COVID-19 pandemic. Following near-term staffing level changes, half (56%) of respondents expect their employee count to be at or above pre-COVID levels, and 18% expect their employee count to be below pre-COVID levels.
Business Outlook Survey – May 2020 | 5
Anticipated compensation adjustmentsMost respondents (72%) expect to maintain current compensation levels.
82%
64%
47%
57%
35%
33%
39%
What are the top concerns for your business?
Sustaining through economic slowdown
Employee well-being and mental health
Return-to-work considerations/workplace safety
Employee engagement/ sustainingrelationships and culture
Innovation/ rethinking our business model
Staying current regarding policychanges for employers
Meeting terms for loan forgiveness
Changing skills and capabilitiesrequired for employees
Meeting increased demand forproducts/services
Top concerns
15%
14%
Over the next several months,how do you expect your
current staffing levelsto change?
Anticipated staf�ng levels, next several
months
11%
70%
Uncertain
Decrease staff levels
Moderatenegativeimpact
5% 7% 16%72%
� Increase compensation levels
� Maintain current compensation levels
� Decrease compensation levels
� Uncertain
Which best describes yourcurrent staffing level?
Current staf�ng levels
5%
27%
68%
Increased
Unchangedsince COVIDcrisis
Reducedsince COVIDcrisis
Have you applied for any loansto address the impact of
COVID-19 to your business?For the loan program shown, please select the
option that best describes your business.
14%
83%
3%
Loan application status Have applied/plan to apply: Loan types
No
Not yet, but plan to
Yes
Following these changes, how doyou expect your staffing levels to
compare to your pre-COVIDemployee count?
What are your plans for employees’ salaries/wages over the next several months?
Following staf�ngchanges, comparison
to pre-COVID employee count
26%
56%
18%
Uncertain
Below pre-COVIDlevels
At or abovepre-COVIDlevels
92%78%
14%2%
20%2%
16%9%
15%5%
2%
5%
Which of these options are true for your business/organization in describing your response to the COVID-19 pandemic and related social distancing requirements?
Took steps to address employee safety
Moved a significant number of employees to WFH
Temporarily closed one or more location
Permanently closed one or more location
Reduced the hours employees are working
Increased the hours employees are working
Implemented temporary layoffs or furloughed employees
Implemented permanent workforce reductions
Increased staff to ensure delivery of products/services
Reduced base pay rate for some or all workers due to cash constraints
Instituted additional pay or bonuses for essential employees
No changes
COVID-19 response
Expected compensation changes, next several months
Insperity Survey:respondents applying
for PPP loans
Workplace safety
Locations
Work hours
Staffing
Wages
Overall, which best describes how your business/organization has been
financially impacted by COVID?
9%
4%
51%
36%
Financial impact,COVID-19
Significant/moderate positive impact
No impact
Moderatenegative impact
Significant negative impact
93% 96%3%
38% 46%8%
19% 29%10%
PPP
EIDL
Direct
� Applied but have not received
� Applied and received funds
� Applied but have not received
� Applied and received funds
41%59%
NFIB Survey:respondents applying
for PPP loans
80%
20%
|
� Have applied
� Plan to apply
19%
Business Outlook Survey – May 2020 | 6
Emergency loansMost responding companies have applied for emergency funding due to the COVID crisis; the PPP loan is the most commonly applied-for emergency loan.
The majority of respondents (83%) have applied for emergency funding, and an additional 3% of respondents still plan to apply. Among those seeking loans, most (96%) have applied or plan to apply for the PPP loan, 46% have applied or plan to apply for Economic Injury Disaster Loans from the SBA, and 29% have applied or plan to apply for direct business or personal loans.
82%
64%
47%
57%
35%
33%
39%
What are the top concerns for your business?
Sustaining through economic slowdown
Employee well-being and mental health
Return-to-work considerations/workplace safety
Employee engagement/ sustainingrelationships and culture
Innovation/ rethinking our business model
Staying current regarding policychanges for employers
Meeting terms for loan forgiveness
Changing skills and capabilitiesrequired for employees
Meeting increased demand forproducts/services
Top concerns
15%
14%
Over the next several months,how do you expect your
current staffing levelsto change?
Anticipated staf�ng levels, next several
months
11%
70%
Uncertain
Decrease staff levels
Moderatenegativeimpact
5% 7% 16%72%
� Increase compensation levels
� Maintain current compensation levels
� Decrease compensation levels
� Uncertain
Which best describes yourcurrent staffing level?
Current staf�ng levels
5%
27%
68%
Increased
Unchangedsince COVIDcrisis
Reducedsince COVIDcrisis
Have you applied for any loansto address the impact of
COVID-19 to your business?For the loan program shown, please select the
option that best describes your business.
14%
83%
3%
Loan application status Have applied/plan to apply: Loan types
No
Not yet, but plan to
Yes
Following these changes, how doyou expect your staffing levels to
compare to your pre-COVIDemployee count?
What are your plans for employees’ salaries/wages over the next several months?
Following staf�ngchanges, comparison
to pre-COVID employee count
26%
56%
18%
Uncertain
Below pre-COVIDlevels
At or abovepre-COVIDlevels
92%78%
14%2%
20%2%
16%9%
15%5%
2%
5%
Which of these options are true for your business/organization in describing your response to the COVID-19 pandemic and related social distancing requirements?
Took steps to address employee safety
Moved a significant number of employees to WFH
Temporarily closed one or more location
Permanently closed one or more location
Reduced the hours employees are working
Increased the hours employees are working
Implemented temporary layoffs or furloughed employees
Implemented permanent workforce reductions
Increased staff to ensure delivery of products/services
Reduced base pay rate for some or all workers due to cash constraints
Instituted additional pay or bonuses for essential employees
No changes
COVID-19 response
Expected compensation changes, next several months
Insperity Survey:respondents applying
for PPP loans
Workplace safety
Locations
Work hours
Staffing
Wages
Overall, which best describes how your business/organization has been
financially impacted by COVID?
9%
4%
51%
36%
Financial impact,COVID-19
Significant/moderate positive impact
No impact
Moderatenegative impact
Significant negative impact
93% 96%3%
38% 46%8%
19% 29%10%
PPP
EIDL
Direct
� Applied but have not received
� Applied and received funds
� Applied but have not received
� Applied and received funds
41%59%
NFIB Survey:respondents applying
for PPP loans
80%
20%
|
� Have applied
� Plan to apply
19%
Business Outlook Survey – May 2020 | 7
82%
64%
47%
57%
35%
33%
39%
What are the top concerns for your business?
Sustaining through economic slowdown
Employee well-being and mental health
Return-to-work considerations/workplace safety
Employee engagement/ sustainingrelationships and culture
Innovation/ rethinking our business model
Staying current regarding policychanges for employers
Meeting terms for loan forgiveness
Changing skills and capabilitiesrequired for employees
Meeting increased demand forproducts/services
Top concerns
15%
14%
Over the next several months,how do you expect your
current staffing levelsto change?
Anticipated staf�ng levels, next several
months
11%
70%
Uncertain
Decrease staff levels
Moderatenegativeimpact
5% 7% 16%72%
� Increase compensation levels
� Maintain current compensation levels
� Decrease compensation levels
� Uncertain
Which best describes yourcurrent staffing level?
Current staf�ng levels
5%
27%
68%
Increased
Unchangedsince COVIDcrisis
Reducedsince COVIDcrisis
Have you applied for any loansto address the impact of
COVID-19 to your business?For the loan program shown, please select the
option that best describes your business.
14%
83%
3%
Loan application status Have applied/plan to apply: Loan types
No
Not yet, but plan to
Yes
Following these changes, how doyou expect your staffing levels to
compare to your pre-COVIDemployee count?
What are your plans for employees’ salaries/wages over the next several months?
Following staf�ngchanges, comparison
to pre-COVID employee count
26%
56%
18%
Uncertain
Below pre-COVIDlevels
At or abovepre-COVIDlevels
92%78%
14%2%
20%2%
16%9%
15%5%
2%
5%
Which of these options are true for your business/organization in describing your response to the COVID-19 pandemic and related social distancing requirements?
Took steps to address employee safety
Moved a significant number of employees to WFH
Temporarily closed one or more location
Permanently closed one or more location
Reduced the hours employees are working
Increased the hours employees are working
Implemented temporary layoffs or furloughed employees
Implemented permanent workforce reductions
Increased staff to ensure delivery of products/services
Reduced base pay rate for some or all workers due to cash constraints
Instituted additional pay or bonuses for essential employees
No changes
COVID-19 response
Expected compensation changes, next several months
Insperity Survey:respondents applying
for PPP loans
Workplace safety
Locations
Work hours
Staffing
Wages
Overall, which best describes how your business/organization has been
financially impacted by COVID?
9%
4%
51%
36%
Financial impact,COVID-19
Significant/moderate positive impact
No impact
Moderatenegative impact
Significant negative impact
93% 96%3%
38% 46%8%
19% 29%10%
PPP
EIDL
Direct
� Applied but have not received
� Applied and received funds
� Applied but have not received
� Applied and received funds
41%59%
NFIB Survey:respondents applying
for PPP loans
80%
20%
|
� Have applied
� Plan to apply
19%
Survey results reflect the responses of 555 business owners and on-site supervisors in a variety of industries from its base of Workforce Optimization and Workforce Synchronization clients throughout the United States on April 27- May 1, 2020. The national survey has a statistical confidence level of 95% with a margin of error of 4.0%.
Please note that the information contained in this report summarizes opinions of the survey respondents, and not those of Insperity, and the results are not a guarantee of any future performance or events.
A recent study by the National Federation of Independent Businesses (NFIB), widely reported in the media, found that only 20% of applicants had received PPP funds by April 17, when the program ran out of money (https://www.nfib.com/content/press-release/economy/80-of-ppp-applicants-are-still-urgently-waiting-for-financial-assistance/). By contrast, the Insperity survey found that Insperity clients may have been much more successful receiving these loans in the first funding cycle, compared to the general market – 59% of applying respondents have received their funds.
Business Outlook Survey – May 2020 | 8
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Call 800.465.3800 or visit insperity.com
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